www.gruppomediaset.it

MEDIASET GROUP

December 2002

IR Roadshow Presentation

www.gruppomediaset.it

Italian Advertising Market

Structural and Long Term Factor

3

Structural and Long-term Factors

Source Advertising Expediture - December 2001

Total Advertising as a % of GDP

0,4

0,6

0,8

1

1,2

1,4

1,6

1997 1998 1999 2000 2001

FRANCEITALY

GERMANYSPAIN

UK

USA

4

Total Market

GERMANY

FRANCEUK

SPAIN

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

1997 1998 1999 2000 2001

Structural and Long-term Factors ADEX TREND 1997 – 2001 (in mio Euro)

ITALY

Source: AcNielsen (It, Ger, UK), Info Adex (SP), Taylor Nelson Sofres (Fr)

5

Source: AcNielsen (It, Ger, UK), Info Adex (SP), Taylor Nelson Sofres (Fr)

GERMANY

FRANCE

UK

SPAIN

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

1997 1998 1999 2000 2001

TV Market

Structural and Long-term Factors ADEX TREND 1997 – 2001 (in mio Euro)

ITALY

6

Structural and Long-term Factors How Italy can narrow its advertising gap with UK

Ad-spend

Nominal GDP= 1.1%

Italian Total Adv. Market DeregulationIndustry

Consolidation

UK Total Adv . Market

2001

Ad-spend

Nominal GDP= 0.64%

UK

ITA

7

Source Nielsen /MMS/Secodip/Infoadex net estimates – 2001 *cinema not monitored

° TV accounts for more than 53% of the Italian advertising industry

° TV weighting in the industry is the highest in Europe

° Pay-TV is still struggling

° Satellite penetretion is below 20%

53.5

38.4

8.1

44.4

47.3

8.3

45.9

40.4

13.7

31.2

41.1

27.7

40.4

46.2

13.4

Italy *Germany U.K. France SpainTV Print Other

Structural and Long-term Factors2001 Media Share on Total Advertising

8

Structural and Long-term Factors Tv Consumption (minutes per day)

Source: Auditel; Target Individuals

230 231224221212

1997 1998 1999 2000 2001

9

Source Auditel Autumn 2001 - Audipress 99 (last published survey) – Audiradio 2001; Target Adults: 49,370,600

Structural and Long-term FactorsReach and Quantitative Coverage in Adults (,000)

39,419

33,174

26,99222,879

19,678Reach on

Adults (%)

81

67

5546

40

TV RADIO WEEKLIES MONTHLIES NEWSPAPERS

10

Source Auditel Autumn 2001 - Audipress 99 (last published survey) – Audiradio 2001; Target Adults : 49,370,600

30,011

5,0757,928

5,147 2,738

CANALE 5

RADIO DJ

SORRISI ECANZONI TV

QUATTRORUOTE CORRIEREDELLA SERA

TV RADIO WEEKLIES MONTHLIES NEWSPAPERS

Structural and Long-term FactorsQuantitative Coverage in Adults (,000)

11

° ITALY

° GERMANY

° FRANCE

° SPAIN

° U.K.

Structural and Long-term FactorsTV Cost per Thousand, European Comparison

5.8

7.1

8.6

6.4

10.7

100

121

147

110

184

Index€

Source: (MediaEdge) 2002 Global Media Cost Comparison

12

° TV (24h)

° Radio (24h)

° Newspaper

° Magazines

° Cinema

Structural and Long-term FactorsTV Cost per Thousand, Italian Comparison

5.8

2.7

10.2

10.4

28.1

100

46

175

178

484

Index€

Source: (MediaEdge) 2002 Global Media Cost Comparison

www.gruppomediaset.it

Mediaset Group

Advertising

14

Publitalia TV Advertising RevenuesQuarterly Growth Trend

4 Q

1 Q

3 Q

2 Q

25.9%

15,3%

29.2%

29.6%

% on Total2001 Revenues

advertising

+6.1%

2000 vs. 1999

+17.5%

+12.8%

+13.6%

2001 vs. 2000

+6.0%

+2.7%

-1.4%

-7.8%

2002 vs. 2001

-3.7%

-2.2%

+1.7%

15

39,9

7,4

48,3

4,4

37,9

7,9

48,1

6,1

36,7

7,9

48,6

6,8

35,5

8

48,7

7,8

33,3

7,6

45,6

13,6

30,8

7,3

42,7

19,2

30,8

8,5

44,0

16,7

1995 1996 1997 1998 1999 2000 2001

Others Automotive Grocery Developing sectors

Source Publitalia’80

Mediaset: Buying Behaviour of Main Macro Sectors

% on Total Revenues

advertising

16

Mediaset: Advertising Investments by Sector (%)

advertising

9M 2001

Pharma4.0%

Food32.8%

Automotive9.6%

No Food18.2%

Finance3.1%

Others17.3%

Media7.4%

Telecom7.6%

9M 2002

Pharma3.2%

Food33.1%

Automotive10.3%

No Food15.6%

Finance3.4%

Others17.0%

Media8.3%

Telecom9.1%

17

Mediaset: 2002 9M Advertising Investments Performance by Sector

advertising

° FOOD

° NO FOOD

° AUTOMOTIVE

° AUTOMOTIVE (excl.FIAT)

° TELECOM

° FINANCE/INSURANCE

° PHARMACEUTICAL

-2.9%

+14.0%

-9.1%

-5.0%

-17.7%

-12.7%

+21.2%

+7.2%

+13.4%

+10.8%

+18.6%

-35.1%

+21.8%

+17.5%

Vs. 2001 Vs. 2000

18

+58.3%

+68.4%

+10.5%

+2.0%

-5.6%

+31.2%

-16.5%

-6.0%

-2.5%

+2.8%

-14.2%

-2.4%

+12.0%

+22.1%

+4.4%

+14.3%

° AUTOMOTIVE

° AUTOMOTIVE (excl. FIAT)

° TELECOM

° FOOD

° NO FOOD

° Cosmetics

° Housekeeping Product

° Toiletries

October 10M2002

advertising

Mediaset: 2002 9M Advertising Investments Last Hints on Some Sectors

www.gruppomediaset.it

MEDIASET GROUP

Broadcasting

20

Mediaset Leader in Free-to-Air Commercial TV

CHANNELS

Source: Mediaset, Auditel (24 hours)

2001 AUDIENCE(Commercial target 15-54)

46.9%

2.2%

8.8%

42.1%

Others

All News Channel

Local ChannelsSatelliteCable

Canale 5Italia1Rete4

RAI 1RAI2RAI3

broadcasting

21

Young Adults

Fem

ale

Mal

e

CANALE 5

ITALIA 1

RETE 4TOT.

AUDIENCE

LA7

RAI 1

RAI 2

RAI 3

broadcasting

Editorial StrategyThree Channels, One Television

22

2002 9M Audience Share

Source: Auditel Individuals

° 24 HOURS

° PRIME TIME

° DAY TIME

43.1%

43.8%

42.7%

46.5%

45.8%

46.6%

broadcasting

23

2002 9M Audience Share Mediaset very close to RAI in Prime Time

Prime Time

1999 2000 2001 9M 2002

41.6%

43.8%

42.2%43.1%

49.5%

45.8%

49.2%47.6%

7.9% 2.0%

Source: Mediaset, Auditel Individuals

broadcasting

www.gruppomediaset.it

MEDIASET GROUP

Financial Highlights

25

2,351.1

(1,030.6)

1,320.5

(733.3)

587.2

418.1

248.4

2,363.6

(1,006.4)

1,357.2

(665.7)

691.5

648.0

423.5

2,048.7

(875.7)

1,173.1

(612.9)

560.2

586.1

339.1

Mediaset Group 2001 Full Year Results (m€)

Net Consolidated Revenues

Operating Costs

EBITDA

Amortization and Depreciation

EBIT

Pre-tax Profit

Net Profit

20002001 1999

financials

26

Mediaset Financial Overview2001 Operations Overview (m€)

2,173.4

37.0

50.3

29.4

2,290.4(*)

EbitTotal Net Revenues

582.6

-9.3

12.8

1.0

587.2

26.8%

n.a.

25.4%

n.a.

25.2%

Ebit Margin

(*) excluding Sale of Rights

° TV Operations

° MULTIMEDIA Operations

° NON TV Operations

° Epsilon (1H2001 only)

financials

27

Mediaset Financial OverviewFocus on TV Operations (m€)

Total Net TV Revenues° Advertising (3rd parties)

° Other TV Revenues (*)

° Commissions

Total TV Costs

° Personnel

° Other operating costs° Amort. & Depreciation

° Sale of Rights

EBIT from TV Operations

margin

2,173.4

2,423.3

112.5

(362.4)

(1,590.9)

(275.0)(658.4)

(718,3)

60.8

582.6

26.8%

2,172.5

2,422.4

103.2

(353.1)

(1,495.4)

(280.5)(592.7)

(651.6)

29.3

677.1

31.2%

1,956.0

2,165.0

106.6

(315.6)

(1,401.5)

(279.7)(521.3)

(611.0)

10.5

554.5

28.3%

(*) excluding Sale of Rights

20002001 1999

financials

28

Mediaset Financial OverviewTV Operating Leverage Trend (m€)

1,312.91,401.5

1,590.91,495.4

1,956.0

1,793.4

2,172.5 2,173.4

480.5 554.5677.1

582.6

1998 1999 2000 2001

+9.1%

+6.8%

+15.5%

+11.1%

+6.7%

+22.1%

+0.0%

+6.4%

-14.0%

Total Net TV Revenues

Total TV Costs

EBIT from TV Operations

financials

29

Mediaset Financial OverviewFocus on Multimedia Operations (m€)

Total Multimedia Revenues

° Thematic Channels

° Teletext

° Internet

Total Multimedia Costs

° Personnel

° Other Operating Costs

° Amort. & Depreciation

EBIT from Multimedia Op.

8.4

4.9

2.7

0.8

(7.4)

(1.6)

(4.7)

(1.1)

1.0

27.4

12.7

4.3

10.3

(26.6)

(2.9)

(18.6)

(5.0)

0.9

37.0

23.8

5.0

8.3

(46.4)

(5.3)

(31.3)

(9.7)

(9.3)

20002001 1999

financials

30

Mediaset Group Associated Company, Net Financial Income (Charges), Extraordinaries (m€)

TELECINCO (40% stake)

ALBACOM (19.5% stake)

Kirch Media (2.28% stake)

Others

41.7

(25.8)

-

(5.8)

24.7

(34.1)

(171.9)

(2.4)

TOTAL Associates 10.0(183.7)

20002001

financials

Net Financial Income/ (Charges) (52.4)(14.8)

Total Extraordinary Items (1.1)29.4

31

Mediaset Group Cash flow Statements (m€)

Net Financial Position 1/1

Free Cash flow

° Cash flow from operations

° Investments

° Others movements

Dividends

Equity movements

Change in Consolidation Area

Net financial Position 31/12

125.3

(297.6)

1,162.3

(1,279.1)

(180.8)

(283.2)

-

207.7

(247.8)

175.5

163.3

1,146.6

(806.1)

(177.2)

(216.2)

2.7

-

125.3

20002001

353.0

(12.4)

950.2

(1,384.9)

422.3

(167.1)

2.0

-

175.5

1999

Total Net Cash Flow (50.2)(373.1) (177.4)

financials

32

76.9116.7

612.5

Mediaset Financial OverviewInvestments (m€)

776.0

392.6(*)

110.5

2000 = 806.12001 = 1,279.1

Associates TV Rights Technical & Immaterial

(*) of which 212.3 m€ coming from the unwinding of Epsilon

9,617 Titles, 53,886 Episodes 8,978 Titles, 51,009 Episodes

financials

www.gruppomediaset.it

Core Business

International TV Business

34

23.9%

19.9%

34.1%

22.1%

others25.0%

19.7%

32.3%

23.0%

others

Telecinco: Audience ShareLeader in Commercial Target

2000 2001

broadcasting

35

TelecincoSpanish TV Advertising Market (m€)

28.4%

23.2%

14.6%1.3%

26.6%5.8%

28.9%

21.6%

14.6%1.2%

27.8%5.8%

2001 = 2,0432000 = 2,227

advertising

Source: Adex Nielsen, Publiespana

36

Telecinco Consolidated Financial Results (m€)

556.0

(378.1)

177.9

154.2

112.1

° Net Revenues

° Operating Costs

° EBIT

° Pre-tax Profit

° Net Profit

610.7

(368.6)

242.1

228.1

154.7

2001 2000 1999

512.7

(350.5)

162.1

149.5

110.5

financials

www.gruppomediaset.it

MEDIASET GROUP

Focus on Core Business

Profitability, Assessing Any

Growth Opportunity

38

Focus on Core Business Profitability ………

° Ebit Margin (ROS)(*)

° FCF (ml €)(*)

° FCF/ Revenues (*)

° Net Profit (ml €)

° EPS (€)

° Dividend (ml €)

° Pay-out ratio

° Debt/ Equity

27.0%

133.0

8.1%

238.9

0.20

139.5

58.4%

n.a.

26.8%

150.3

8.4%

284.4

0.24

167.1

58.7%

n.a.

28.4%

383.9

19.6%

339.2

0.29

216.2

63.7%

n.a.

31.2%

282.7

13.0%

423.5

0.36

283.2

67.0%

n.a.

1997 1998 1999 2000 2001

26.8%

187.0

8.6%

373.8(**)

0.32(**)

247.8

67.0%(**)

10.5%

financials

(**) excluding Kirch Media extraordinary provisions

(*) TV Operations (for FCF: excluding Associates Investments)

39

……… Assessing All the Growth Opportunities

DTT

Mediaset Group

TECHNICAL GEOGRAPHICAL EXPANSION

REGULATORY FRAMEWORK VALUE CHAIN IN ITALY

BroadBand

3G mobile

Rights Trading

PubliEurope

Tele5 stake increase

Full Rights Exploitation

Fiction re-sale

Merchandising and Brand Extension

Radio

ADV Other Means

Local Advertising

Mobile interactivity

German MRKT (?)